Fashion
US company Carter’s sales climb 7.6% to $925.5 mn in Q4
The additional week in the fourth quarter of fiscal 2025, compared to the fourth quarter of fiscal 2024, contributed approximately $37.0 million in consolidated net sales. On a comparable week basis, net sales grew 3.4 per cent. On a reported basis including the extra week in fiscal 2025, the US retail, international, and US wholesale segments grew 9.4 per cent, 10.2 per cent, and 3.4 per cent, respectively. US retail comparable net sales increased 4.7 per cent. Changes in foreign currency exchange rates used for translation in the fourth quarter of fiscal 2025, as compared to the fourth quarter of fiscal 2024, had a favourable effect on consolidated net sales of approximately $3.0 million, or 0.3 per cent.
Carter’s reported Q4 fiscal 2025 sales of $925.5 million, up 7.6 per cent, boosted by a $37 million extra week; on a comparable basis, sales rose 3.4 per cent.
Growth spanned US retail, international, and wholesale segments.
Operating income edged up to $84.7 million, though margin dipped to 9.2 per cent.
Full-year sales increased 1.9 per cent to $2.9 billion.
Operating income increased $1.5 million, or 1.8 per cent, to $84.7 million, compared to $83.2 million in the fourth quarter of fiscal 2024. Operating margin decreased 50 basis points to 9.2 per cent, reflecting incremental tariff costs, investments in product mix and make, and higher performance-based compensation provisions, partially offset by higher pricing, lower corporate expenses, and an asset impairment charge in the prior year period.
“Carter’s delivered improved fourth quarter results with each of our business segments posting sales growth over last year. We see momentum building behind our products and demand creation initiatives, which have driven an improvement in the rate of traffic, new customer acquisition, higher realised pricing, and increased penetration of the best portions of our product assortments. All of this gives us confidence that our strategies are gaining traction,” said Douglas C Palladini, chief executive officer & president.
“2025 was a year of meaningful progress in stabilising our business while responding to significant new tariffs. We took actions to right-size our cost structure and we launched several important initiatives to improve the productivity of our merchandise assortments and store fleet. We also strengthened our balance sheet and liquidity with the successful refinancing of our long-term debt and a new asset-based revolving credit facility in place,” Palladini added.
Consolidated net sales increased $54.3 million, or 1.9 per cent, to $2.90 billion, compared to $2.84 billion in fiscal 2024, reflecting growth in our US retail and international segments that were partially offset by a decline in the US wholesale segment. The additional week in fiscal 2025, compared to fiscal 2024, contributed approximately $37.0 million in consolidated net sales. On a comparable week basis, net sales grew 0.6 per cent. On a reported basis including the extra week in fiscal 2025, the company’s US retail and international segments grew 3.5 per cent, and 6.3 per cent, respectively, while US wholesale net sales declined 2.0 per cent. US retail comparable net sales increased 1.4 per cent. Changes in foreign currency exchange rates used for translation in fiscal 2025, as compared to fiscal 2024, had an unfavourable effect on consolidated net sales of approximately $6.7 million, or 0.2 per cent, the company said in a press release.
“While we are encouraged by our progress, much work remains. Excluding the recent tariff developments, for 2026 we are planning growth in net sales as we build on the momentum of our product and demand creation strategies. We are also planning growth in operating income. We will remain focused and disciplined in our investments and overall spending and expect solid contributions from productivity initiatives. We believe the recent news regarding tariffs will be net positive for Carter’s, but it will take some time to fully understand the implications for our business and the broader marketplace. Our talented and dedicated teams and I are committed to returning Carter’s to long-term sustainable, profitable growth over time,” Palladini concluded.
Fibre2Fashion News Desk (RR)